Clemson Software is considering a new project whose data are…

Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project’s 3-year life. What is the project’s Year 1 operating cash flow?   Equipment cost (depreciable basis) $65,000     Sales revenues, each year $60,000 Operating costs (excl. deprec.) $25,000 Tax rate 35.0%    

Susan recently received a credit card with a nominal interes…

Susan recently received a credit card with a nominal interest rate of 19 percent.  With the card, she purchased some new clothes for $325.  The minimum payment on the card is only $10 per month.  If Susan makes the minimum monthly payment and makes no other charges, how long will it be before she pays off the card?

Your client is 25 years old, and she wants to begin saving f…

Your client is 25 years old, and she wants to begin saving for retirement, with the first payment to come one year from now.  She can save $9,500 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 9 percent.  If she follows your advice, how much money would she have at age 60?